Party of Regions dominates state tenders
3 October 2012
Individuals linked to the pro-governmental Party of Regions are sweeping state tenders in terms of value since the beginning of 2012, according to an investigation by Forbes Ukraine. The top five individuals, all tied to Regions, have accounted for 50% of a total of UAH 42.4 bln so far this year in state tenders: Alexander Yanukovych (the president’s oldest son), Rinat Akhmetov (Ukraine’s richest man and a Regions MP), Alexander Tislenko (chairman of Altkom, the shady business that won more than half of Euro-2012 tenders), Dmytro Firtash (owner of Group DF, rumored to be a major Regions financier) and Alexander Yefremov (nominal head of the Party of Regions). Nine of the 10 individuals are either linked to the Party of Regions or head up state controlled companies. More details (in Russian) can be found here: http://forbes.ua/ratings/people. In other news, parliament adopted a bill in first reading yesterday that gives customers the right to require bidders in public procurement tenders to have manufacturing or service facilities in Ukraine until December 31, 2015.
Top state tender winners
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Individual Value, UAH mln
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Alexander Yanukovych 8,557
Rinat Akhmetov 5,558
Alexander Tislenko 2,790
Dmytro Firtash 2,520
Alexander Yefremov 1,489
Yuriy Ivanyushchenko 1,377
Viktor Vekselberg 1,089
Serhiy Katsuba 1,016
Volodymyr Petrenko 733
Valeriy Stohryn 630
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Source: Forbes Ukraine
Brad Wells: Various pundits and international organizations have lobbed the term “kleptocracy” at Ukraine in the two years, but this investigation really brings it home by highlighting the shear extent to which key figures related to the Party of Regions are dominating state tenders. Notably, these tenders have had little effective challenge so far from either opposition politicians or competitors – which seems sure to only further encourage the abuse of state tenders and corruption.
